Car sales hit six year high in the U.S.

Rob Varnon

Updated 9:40 pm, Tuesday, April 2, 2013

Park City Ford President David Flint poses in the showroom at the dealership in Bridgeport, Conn. on Tuesday April 2, 2013. New car sales have risen to a six-year high last month and Flint says sales from his lot has gone up 22 percent from a year ago.
Photo: Christian Abraham

The interior of a 2013 Ford Fusion in Park City Ford's showroom in Bridgeport, Conn. on Tuesday April 2, 2013. New car sales have risen to a six-year high last month and dealership President David Flint says sales from his lot has gone up 22 percent from a year ago.
Photo: Christian Abraham

A young man takes a look at the newest Ford Fusion electric hybrid on display outside Park City Ford in Bridgeport, Conn. on Tuesday April 2, 2013. New car sales have risen to a six-year high last month and dealership President David Flint says sales from his lot has gone up 22 percent from a year ago.
Photo: Christian Abraham

Park City Ford in Bridgeport, Conn. on Tuesday April 2, 2013. New car sales have risen to a six-year high last month and dealership President David Flint says sales from his lot has gone up 22 percent from a year ago.
Photo: Christian Abraham

Cars rolled out of factories and off dealership lots at the highest pace in six years in March, and Connecticut residents were along for the ride in a resurgent American auto market.

Ford and Chrysler both reported their best monthly sales in the U.S. since 2007 and General Motors was up 6.4 percent for March. Foreign car makers were also up for the month, with Toyota and Nissan both up 1 percent. In total, about 1.5 million cars were sold last month.

"I think we're feeling what's happening in the country," said David Flint, president of Park City Ford in Bridgeport, where sales are up 22 percent from a year ago. The Bridgeport-based dealership sold six cars on Monday and one on a chilly Tuesday.

A combination of factors is driving the surge in sales. Dealers cited low interest rates, higher trade-in values for sellers and new car designs that boast better fuel efficiency.

"I think it's only going to get better," Flint said, citing improvement in the economy.

And while low interest rates are helping, Flint noted that 20 to 30 percent of his sales are for cash. He's had some customers say they had a good year in the stock market and they're using the money for a new car and some people have saved up.

In New Canaan, Leo Karl III, president of Karl Chevrolet, said people see this as a great time to buy a new car because interest rates are low. While there are some incentive deals for zero-percent financing, Karl said even standard, fixed-rate loans are carrying only 1-to-2 percent interest rates.

Plus, dealers are paying more for the vehicles people are trading in. Because car makers nearly halved their production during the recession, there aren't as many vehicles that are three or four years old, so those cars are holding their value, he said.

"A lot of people are trading up," he said.

Still, Karl said he sees the region as a little behind other parts of the country where job growth is stronger. He's hopeful that Connecticut will catch up, though.

Part of the surge in sales is from people who delayed buying through the recession.

Americans have been driving their cars longer than at any other time in history, said Rebecca Lindland, an automotive consultant for Rebel Three Media and Consulting in Greenwich. She said there's a lot of pent up demand in the country.

"The average age of a vehicle on the road today is 11 years," she said. "In Europe it's eight-and-a-half or nine years."

Lindland said the U.S. car industry went through some ugly times and there was some fallout from that. GM and Chrysler had to take government bailouts and the designs coming out of Detroit were sometimes lacking in aesthetics, she said.

"People under the age of 45 have had to live with some pretty ugly cars," she said.

The result was like watching your favorite Hollywood couple go through a divorce.

"It was a little disillusioning," she said.

But things are changing. Car makers are turning their design teams loose, she said, asking them to be aggressive.

The result has Americans liking their cars again, she said.

Ultimately, industry forecasts calling for 15 million car sales this year are realistic and sustainable, according to Lindland. "It's great to see."